Saudi awards key rail project contract
Riyadh, August 27, 2014
Saudi Arabia has awarded a contract to China Railway Construction Corporation for the renewal of the freight railway line between Dammam and Riyadh.
The SR122.8 million ($32.5 million) deal was signed by Saudi Railways Organization (SRO) president Mohamed Khalid Al-Suwaiket with Chinese authorities, said an Arab News report.
The contract covers the first phase of the renewal project of 78.4 km.
SRO is also working on completing the bidding documents for the second phase of the renewal project covering 91 km of the freight line between Dammam and Riyadh, the report added.
This 21-month contract is part of SRO’s efforts to upgrade and develop the efficiency of the existing railway network as well as the transport fleet of wagons and locomotives, said Al Suwaiket.
The project is aimed at helping SRO to increase its share of the freight market, hed added.
Emphasising the advantages of movement by train in terms of safety and security, Al Suwaiket said it will bring significant benefits to the national economy as rail transport could help reduce accidents on the roads and road maintenance costs while cutting environmental pollution.